Company Formation

Offshore Company Setup

An offshore company can be incorporated as an International Business Corporation or an Offshore Limited Liability Company, as a Trust or as an Offshore Foundation. Since the legal structure has a great importance you are advised to form an Offshore Company only through a consultant as Al Bastaki Business Services able to minimize your risk maintaining an high level of confidentiality. The principal advantage of incorporating this company is a no or very low income tax. Incorporation process has to be done through a registered agent and usually can be active in 3-5 working days. It is possible to open a bank account to conduct routine operational transaction and with 100% repatriation of capital and profits.

An Offshore Company can be owned by individuals or corporate bodies and usually does not carry any business in the country of incorporation. Since it has a juridical status of non-resident company is not eligible to rent a physical office or a warehouse in UAE and does not allow to obtain a resident visa for its employees. Permitted activities are many and goes from international trade to investments. The default activity is General Trading but is possible to obtain activity as investment in properties or act as an holding company. Activities like banking, insurance, media, publishing, casinos, movie production, advertising, consultant, and financial services are not consented. It can be used as a corporate shareholder of a mainland company or Free Zone company in order to maintain a complete financial privacy and confidentiality.

The United Arab Emirates are rapidly becoming an important Offshore destination for companies formation. Offshore Companies are mainly settled up in order to minimize the tax payments, avoid an high tax expense in case of an inheritance, act as an holding investing company or invest in commodities, shares, stocks, asset holding and protection. United Arab Emirates has entered in more than 47 double tax treaties. An offshore company can even be used as beneficiary of real estate properties bought in some areas of Dubai and this option is mostly used for succession planning. Other use can be licensing of franchising, hold intellectual property rights, trademarks, and copyright.